China cuts taxes on new-energy vehicles, vessels

By Editor


China has announced new tax exemptions for electric vehicles as part of the country’s efforts to combat pollution.

The Asian giant ranks as the top carbon emitter in the global rankings followed by the US and India.

The country has announced that new-energy cars including pure electric commercial cars, plug-in hybrid vehicles and fuel-cell commercial cars, will be exempted from vehicle taxes.

According to a joint statement issued by the Chinese ministry of finance, state administration of taxation and the ministry of industry and information technology, vehicle and vessel tax will be halved for users of energy-saving cars and ships.

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China has witnessed a three-fold increase in the production of new energy vehicles year on year to 25,400 in the first quarter of 2015. Various measures taken by the Chinese government to promote and support such vehicles supported the growth.

In March, the ministry of transport of China had set a target of 300,000 new energy vehicles on China’s roads by 2020. That figure included 200,000 new energy buses and 100,000 new energy taxis and delivery vehicles.

The ministry of commerce, too, had announced earlier this year that China will continue to encourage the construction of charging facilities in cities and implement tax exemptions and subsidies for car purchases.

Ajith Kumar S

[email protected]

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